PhonePe’s loss drops marginally to Rs 1,728 crore in FY21
- ByStartupStory | June 25, 2022
According to the most recent filings with the Ministry of Corporate Affairs (MCA), the consolidated loss for digital payments company PhonePe decreased somewhat to Rs 1,728 crore in FY21. It had a combined loss of Rs. 1,771.6 crore in FY20. Operations revenue increased to Rs 690 crore in FY21 from Rs 371.7 crore in the prior fiscal year. Total personnel costs increased dramatically from Rs 480 crore in FY20 to Rs 1,235 crore in FY21.
PhonePe was founded in 2015 and is run by Sameer Nigam. Following Walmart’s 2018 acquisition of Flipkart Group by the retailer, the business joined Walmart. Currently, Walmart owns roughly 10% of PhonePe, while Flipkart controls about 87 per cent.
Walmart, a massive US retailer, purchased Flipkart in 2018, and PhonePe was a part of the transaction. At a valuation of $5.5 billion, the company raised $700 million in December 2020, with promoters Flipkart and Walmart leading the charge. The fintech company announced that it was being split off from the Flipkart Group along with the funding.
Following the deal, Flipkart retained 87 per cent of the company’s shares, Walmart owed 10 per cent, and the remaining 35 per cent was held by current investors, notably Tiger Global Management of New York.
The Singapore branch of PhonePe has also raised $66.5 million (about Rs 500 crore) in a capital round headed by Chinese internet major Tencent Holdings Ltd and participation from Tiger Global, closing its $700 million fundraise in August 2021. As part of its expansion strategy, PhonePe intends to boost its personnel to 5,200 by the end of December 2022.
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